Insight report-1
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A survey of over 1,000 US consumers found that fuel savings ranked as the most preferred incentive for rewards programs. More than two-thirds of respondents said they would be willing to change brands or retailers to save 10 cents to $1 per gallon on gas. The survey also found that rewards programs that offer fuel savings see high levels of consumer participation and engagement, with 46% of members checking or redeeming rewards weekly or daily. Fuel savings were preferred over other common rewards like cash back, points programs, or discounts. The results suggest retailers should consider offering fuel savings incentives in their loyalty programs as a way to attract and engage customers.
Insight report-1
- 1. The Road to Rewards1 The Road to Rewards Fuel Savings Rank #1 as Consumers’ Preferred Incentive for Rewards Programs An Excentus consumer survey by Ipsos eNation, July 2015
- 2. The Road to Rewards2 This new data proves why retailers should offer rewards programs with incentives that consumers want: a way to ease everyday expenses on an everyday commodity, fuel. U.S. retailers and merchants face numerous options when deciding which incentives to offer their customers. A serious lack of hard data around which incentives and rewards programs consumers prefer and which ones deliver the highest levels of activity, greatest likelihood of increased sales and deepest brand loyalty makes the decision even more difficult. Should they offer cashback pro- grams or retailer-specific points? Instant discounts or coupons? A July 2015 nationwide survey of 1,016 U.S. consumers found that consumers prefer rewards programs that enable them to save on the cost of gasoline/fuel more than other incentives. Why? Incentives to save on fuel enable them to save money on a household necessity, freeing up precious budget dollars to spend elsewhere. More than two-thirds, in fact, indicated a willingness to change brands, switch retailers or buy in-store rather than online in order to save anywhere from 10 cents to $1 per gallon on gasoline. Overview
- 3. The Road to Rewards3 The survey of 1,016 U.S. consumers was conducted July 10-13, 2015 by Ipsos eNation on behalf of Excentus Corp. The survey has a margin of error of +/- 3.1 percentage points. Activity levels are high with fuel-savings rewards programs. When asked to rate programs in which they are most actively earning rewards, fuel savings rank #1 at 29% -- higher than credit card cash-back programs and rewards, instant discounts, mer- chant-specific rewards, coupons, airline and hotel miles/points. And when they say “active,” they mean active: 46% of consumers say they earn, buy, redeem or check rewards daily or weekly. U.S. consumers have ranked fuel savings as their preferred type of rewards program and list it as the incentive with which they earn and redeem most actively. These findings emerged in a recent survey of more than 1,000 consumers about rewards- based incentives, including insights into why consumers join rewards programs, how frequently/ actively they use rewards incentives, and how they incorporate rewards programs into their daily bud- gets, brand/retailer choices and shopping patterns. More than half of Americans (54%) belong to a pro- gram that enables them to earn incentives they can redeem on the cost of gasoline/fuel. Fuel savings, in fact, emerged as #1 of all incentives among today’s most common rewards program benefits. For membership and consumer activity Fuel savings rank #1... As consumers’ preferred incentive for rewards Fuel savings rewards Fuel savings rewards Cash back on credit card Cash back on credit card Retailer/brand coupons Retailer/brand coupons Credit card rewards Credit card rewards Cash-register instant discounts Cash-register instant discounts Airline miles Airline miles Restaurant/grocer rewards Restaurant/grocer rewards Members-only rewards Hotel points Hotel points Retailer-specific rewards Retailer-specific rewards 37% 32% 25% 24% 24% 22% 17% 16% 16% 14% 0% 0% 10% 20% 30% 40% 30% 20% 10% 29% 24% 17% 16% 15% 13% 10% 10% 6%
- 4. The Road to Rewards4 Rewards program popularity is driven by the ability to save, earn and redeem on everyday purchases The most common merchants from whom consumers earn fuel-savings rewards encompass retailers that are part of daily shopping routines: Grocery stores Retail stores Credit Cards Restaurant or dining 68% 22% 16% 7% I like saving money any way I can I can earn rewards/points on everyday purchases Money saved eases the strain in my household budget I was offered an incentive to join It’s my way of supporting my favorite brand Other Gasoline is a universal commodity and an unavoidable line item in most consumers’ budgets. What drives consumers to join fuel- savings programs? 46% Say the fuel incentive is offered as part of an existing loyalty program 40% Join to save money 37% Join because they can earn rewards where they already shop 19% Join to save on the costs of driving 15% Join because the incentive is linked to a credit card
- 5. The Road to Rewards5 Fuel savings influence millennials’ mobile behaviors and consumers’ brand and shopping preferences. The Midwest embraces fuel savings slightly more than the West, South & Northeast regions. Future updates from the Excentus-Ipsos survey will explore additional insights into the popularity of fuel-savings rewards programs, including regional Millennials (ages 18-34) are more than twice as likely as other age groups to prefer to track their rewards from a mobile app (33% Millennials; 16% ages 34-54; 3% ages 55+) Key Insights Midwestern consumers (57%) are more likely than those in other U.S. regions to belong to a fuel-savings rewards program, compared with 56% West, 52% South and 50% Northeast Based on consumers’ responses and behaviors, retailers now have clearer data and insight into the incentives that shoppers enjoy most in rewards and loyalty programs. Whether stand-alone or combined with other rewards programs, the ability to save money on gasoline/fuel is a popular, frequently used and sought- after incentive. Today’s consumers enjoy the value and budget-friendly impact of fuel savings, and the regularity and frequency with which they can enjoy and redeem the rewards they earn. Retailers and merchants can take advantage of these new findings as they create and enhance rewards programs, especially if they are interested in more customers, more sales, more program activity and deeper customer satisfaction and loyalty. Conclusion Fuel savings can influence shopping behaviors and brand preferences, based on 19% of consumers who would choose a different brand to earn 25-50 cents-per-gallon on fuel, 17%- 20% who would switch retailers to earn 25 cents to $1 per-gallon on fuel, and 20% who would pur- chase in-store rather than online to earn 25-50 cents-per-gallon on fuel. and demographic differences, and their impact on shoppers’ preferences and behaviors. A few high- lights include:
- 6. The Road to Rewards6 Media and Analyst Inquiries Additional information and data from this survey is available to analysts and media professionals who cover customer loyalty, rewards programs, consumer behaviors, the retail sector and other Upcoming reports from our business intelligence unit include: • Spotlight on Millennials: What drives behavior around retailer incentives and rewards programs. • American Shopper Insights: A closer look, based on demographics and region, at consumer preferences around retailer incentives and rewards. related topics of interest. For upcoming reports, research, articles or editorial calendars, please contact Vanessa Horwell, vhorwell@thinkinkpr.com or call +1-305-759-5342 ext. 232. Excentus creates proprietary software that helps numerous loyalty and marketing programs drive down the cost of everyday commodities like gas- oline. With direct-to-consumer programs like the Fuel Rewards® program and fuelperks!, or through companies utilizing its Centego products and ser- vices, Excentus has helped consumers save more than $500 million at the pump since 2012. http://www.excentus.com/ Ipsos is the world’s third largest survey research firm with offices in 56 countries. In North America, Ipsos consists of 1,500 research professionals across 30 locations in the U.S. and Canada. Both the Ipsos survey invitation list and the returned data are weighted to reflect the demographic com- position of the U.S. adult population. http://www.ipsos-na.com/